The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support
to international institutions.

The New York Fed engages with individuals, households and businesses in the Second District and maintains an active dialogue in the region. The Bank gathers and shares regional economic intelligence to inform our community and policy makers, and promotes
sound financial and economic decisions through community development and education programs.

We establish key stylized facts about the post-crisis evolution of trading and pricing of credit
default swaps. Using supervisory contract-level data, we document that dealers become net
buyers of credit protection starting in the second half of 2014, both through reducing the amount
of protection they sell in the single-name market and through switching to buying protection in
the index market. More generally, we argue that considering simultaneous positions in different
types of credit derivatives is crucial for understanding institutions’ participation decisions and
how these decisions affect prices in these markets.

Nina Boyarchenko
The author declares that she has no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Anna Costello
The author declares that she has no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Or Shachar
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.